ITTOOLKIT [ IN PRACTICE ]
Fantasy Farms and Fintech: A Blooming Success
Each year, Fantasy Farms grows more than 50 million stems of flowers across its own farms and by working with qualified growers in Colombia, Costa Rica, Ecuador, and Mexico. The company regularly supplies 8,000-plus retail locations and 30,000-plus locations during major holidays.
THE CUSTOMER Fantasy Farms is a sustainable agriculture company specializing in organic produce, heirloom fruits, and eco-conscious farming practices. With a focus on community-supported agriculture, it delivers fresh, locally grown food directly to consumers and regional markets. THE PROVIDER Fintech, a business solutions provider based in Tampa, Florida, offers scan- based trading (SBT) capabilities tailored to retailers and their suppliers, among other solutions.
One reason for Fantasy Farms’ success is its partnership with Fintech, a business solutions provider, which leverages their expertise and solutions in scan-based trading (SBT). In the SBT model, ownership of a product transfers from the supplier to the retailer only for that brief period—in many cases, mere seconds—between when an item is scanned at the checkout counter and the customer pays for it. While it’s not without risk, Fantasy Farm’s use of SBT, along with direct- store-delivery (DSD) and solid logistics, has been key to its growth.“We’re happy with the decision that we’ve made,” says Daniel Sabogal, chief executive officer and founder of Fantasy Farms. Fresh flowers, which are Fantasy Farm’s core product, require tons of care in growing and shipping. They’re vulnerable to weather events and any breaks in the cold chain. To minimize the risk of mishaps in transit, Fantasy Farms has partnered with a shipper to use a direct-store-delivery arrangement, in which the flowers move directly from the company’s farms to the
stores where they’ll be sold. Shipments can reach any ZIP code in the United States, including within Alaska and Hawaii, between 48 and 72 hours after the flowers are harvested. Fantasy Farms’ packaging keeps the flowers hydrated and as protected as possible while they’re in transit. Once the flowers reach a store, the packaging converts to a small, disposable point-of-sale display. RISKY BUSINESS Even once the flowers arrive at their retail destinations, the risks don’t stop. Store employees may neglect to follow the display instructions or may place the display where it’s not as visible as it could be. “A combination of so many risks are associated with the nature of the product,” Sabogal says. It may initially seem counter-intuitive that Fantasy Farms would decide to shift to a scan-based trading program. However, the SBT arrangement offers the company a way to differentiate itself from its competitors. “It is a matter of doing SBT in the most educated way possible,” Sabogal says.
by: Karen Kroll
June 2025 • Inbound Logistics 77
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